Texas Attorney General Greg Abbott announced yesterday that Bermuda-based insurance carrier Allied World Assurance Company Holdings Ltd. would pay the state $2.1 million to settle charges that it fixed commercial insurance prices with American International Group.

According to a civil action filed by Mr. Abbott’s office yesterday along with the agreement to settle it, AWAC “was the brainchild of [then] AIG Chairman Maurice (‘Hank’) Greenberg.”

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